Social and Mobile Marketing

C H APTE R 3 Social and Mobile Marketing S ocial media have revolutionized how companies communicate with, listen to, and learn from their customers. The volume of information gen- and its customers the immediacy of instant chat and conversations. Through Facebook, LinkedIn, Twitter, and Google1, as well as Dell s flagship blog Direct2Dell.com erated can be a powerful tool for improving all business operations, including product design, technical support, and customer service. Few and a host of other blogs, it has vastly diversified its marketing channels to target each different audience. In addition to customer support, the new companies have mastered this transformational potential better than Dell, one of the world s largest providers of fast-evolving breakthrough IT solutions for home and business. Today, the company is viewed as one of the top social media brands worldwide.1 The company has always valued consumer input, according to founder and CEO Michael Dell: One of Dell s founding principles was really about listening and learning from our customers, and being able to take that feedback to improve. 2 Now social media channels like Facebook and Twitter have vastly accelerated that learning curve.3 Dell still offers traditional on- LEARNING OBJECTIVES LO1 Describe the 4E framework of social media marketing. L02 Understand the types of social media. L03 Understand the types of mobile applications. LO4 Recognize and under- stand the three components of a social media strategy. LO5 Understand the methods for marketing yourself using social media. media provide company and product news and food for thought to its customers about digital business and digital life. In turn, they enable the company to monitor and learn from fast-shifting user conversations.4 How does a company draw meaning about its products from the thousands of Facebook, Twitter, and other social media interactions that occur daily? Listening and analysis or social media monitoring is key, enabling companies to identify salient customer input and trends. For example, with its social media monitoring partner Radian6, Dell conducts a form of market research called sentiment line support forums, which post questions and answers for different user groups and by topic. A link to Dell s mobile phone app also analysis to gather, categorize, and interpret vast volumes of online customer discussions. The Radian6 coupling of text analysis helps users stay connected on the road. Dell s multiple, highly developed social media channels differ qualitatively as well. They give the company and high-volume digital content gathering technologies means Dell can monitor approximately 25,000 conversations a day.5 CHA APTER 3 81

82 Section One Assessing the Marketplace Dell gathers and monitors these online chats and posts, and engages in other discussions from its new Social Media Listening Command Center. The staff includes 70 trained employees who follow and respond to social media conversations in 11 languages. All tweets, Facebook posts, and other comments that warrant a Dell response are answered within 24 hours. 6 And Dell is not just listening online. At its annual consumer advisory meetings, key bloggers and other digital opinion leaders sit around a table with Dell leadership and staff in open-ended discussions about company products, services, and processes. One blogger last year described herself and other Dell users as an army of resources that Dell should continue to mobilize. 7 And that s clearly Dell s strategic intent. In its aggressive integration of social media, Dell has made the customer a critical partner in the design and evolution of its products and services. LO1 Describe the 4E framework of social media marketing. THE 4E FRAMEWORK FOR SOCIAL MEDIA As we will see throughout the book and as we saw in the chapter opener, social media is becoming an integral component of any integrated marketing communications strategy. The term social media refers to content distributed through online and mobile technologies to facilitate interpersonal interactions. These media utilize various firms that offer services or tools to help consumers and firms build connections. Through these connections, marketers and customers share information of all forms from their thoughts about products or images, to uploaded pictures, music, and videos. The diffusion of technology used to bring us social media has been accelerating since the Internet came on the scene in the mid- to late-1990s, as depicted in Exhibit 3.1. The ideas were exciting, but ultimately, there was little to engage people. After the crisis of Y2K at the turn of the twentieth century, when computers failed to implode as a result of their inability to change their internal clocks to the new century, and after the bursting of the dot-com bubble, social media got a bit more serious and professional. Sites recognized that they had to offer surfers E X H I B I T 3.1 Technology Evolution over the Life of the Social Web 1997: 37% of households have computers, 18% have Internet access 1999: First Blackberry available Invention: Mid- to late-1990s Industrialization: 2000 2006 2002: Wi-Fi becomes common 2003: 62% of households have computers, 55% have Internet access 2006: 10% of mobile phone users have a smartphone 2007: First iphone is released 2008: Apple s App Store is launched 2009: 70% of households have computers, 70% have Internet access 2011: ipad, tablet, and geolocation become common 2011: 40% of mobile phone users have a smartphone Entrepreneurial: 2007 Present Source: Adapted from: Coca-Cola Retailing Research Council and the Integer Group, Assessing the Social Networking Landscape, in Untangling the Social Web: Insights for Users, Brands, and Retailers, January 2012.

Social and Mobile Marketing Chapter Three 83 something exciting, educational, or experiential if they were to keep them coming back. Today, we have entered the entrepreneurial era, in which companies work to find ways to earn profits from the ways that consumers use and enjoy social media. The changes and advances in social, mobile, and online technologies have created a perfect storm, forcing firms to change how they communicate with their customers. Traditional ways to market their products, using brick-and-mortar stores, traditional mass media (e.g., print, television, radio), and other sales promotional vehicles (e.g., mail, telemarketing) are no longer sufficient for many firms. The presence of social, mobile, and online marketing is steadily expanding relative to these more traditional forms of integrated marketing communication (IMC). The changing role of traditional media, sales promotions, and retail, coupled with the new media of social, mobile, and online, has led to a different way of thinking about the objectives of marketing communications using the 4E framework (see Exhibit 3.2): E xcite customers with relevant offers. E ducate them about the offering. Help them E xperience products, whether directly or indirectly. Give them an opportunity to E ngage with their social network. Excite the Customer Marketers use many kinds of social media related offers to excite customers, including mobile applications and games to get the customers excited about an idea, product, brand, or company. Firms actively use social networks like Facebook and Google 1 to communicate deals that are likely to excite consumers, such as a Groupon price promotion that is communicated through the social networks of already interested consumers. To excite customers, an offer must be relevant to its targeted customer. Relevancy can be achieved by providing personalized offers, which are determined through insights and information obtained from customer relationship management and/or loyalty programs. To obtain these insights and information, the firm might use online analytic tools such as Google analytics or a listening system such as those provided by Radian6, described in the chapter opener and later in this chapter. Today, multi-tasking is a way of life. E X H I B I T 3.2 The 4E Framework for Social Media Excite Customers Educate Engage Experience

84 Section One Assessing the Marketplace E X H I B I T 3.3 Illustrative Social Media Campaigns Campaign True Blood Heinz Volkswagen Flair Intel Toshiba Description To get fans excited for its most recent season of True Blood, HBO released a Facebook app called Immortalize Yourself. The app allowed vampire lovers and avid fans to break through the barrier of the television, by inserting images of themselves and their friends into True Blood video clips. As science fiction fans have long dreamed, they could appear to be actually part of the action fangs and all. Modern consumers often feel that they lack the time or ability to remember when they should send greeting cards or check in with a sick friend. Instead, they send birthday wishes via Facebook. Therefore, the condiment company expanded the notion by developing a Facebook campaign that allowed users to pay $3 to send a sick friend a can of tomato or chicken soup, inscribed with the friend s name with the greeting Get Well Soon. How thoughtful did they look simply by clicking a button! A lot of companies ask customers to like their site. Although clicking the Facebook thumbs-up icon is easy, Volkswagen decided to make it exciting as well. Customers in the Netherlands who visited Facebook and voted for their favorite classic car the T1 or the Beetle were entered automatically into a drawing for a Fanwagen. This special edition of the winning car model was fully loaded with social media features, including the ability to view Facebook news feeds in the car and display a relationship status on the license plate. The fashion magazine Flair took the popular question, Where did you find that fabulous item? and turned it into the Fashion Tag Facebook app. People have long looked to others, especially relevant members of a social group, for fashion inspiration. With the Fashion Tag app, users can ask about where to find the great looks, including both clothing and accessories, featured in friends pictures. Movies are great, but they would be better if the characters would just listen to the advice viewers give them! Intel and Toshiba understand; they developed the interactive movie, The Inside Experience, starring Emmy Rossum. The actress posted clues about her abducted character s whereabouts on Facebook, Twitter, and YouTube, and viewers worked together to solve the central mystery of the film and thus save her character. Anyone who had ever complained about an unbelievable plot twist or disappointing ending had his or her own chance to determine how the show would end. Source: Adapted from Like This, Follow That: It s the 10 Best Social Media Campaigns of the Year, Ad Age, December 12, 2011. In some cases location-based software and applications help bring the offer to the customers when they are in the process of making a purchase decision. For instance, Staples may provide a loyal customer a relevant coupon based on previous purchases through his or her mobile phone, while they are in the store a very relevant and hopefully exciting experience. Exhibit 3.3 highlights some illustrative and successful social media campaigns because they are exciting and relevant to their audiences. Staples excites its customers by giving them instant rewards through his or her mobile phone, while they are in the store. Educate the Customer An imperative of well-designed social media marketing offers is that they have a clear call to action: To draw customers through their computers, tablets, and mobile devices into online websites or traditional retail stores. When potential customers arrive at the websites or stores, the marketer has a golden opportunity to educate them about its value proposition and communicate the offered benefits. Some of this information may be new, but in some cases, education is all about reminding people about what they already know. Therefore, by engaging in appropriate education, marketers are expanding the overlap of the benefits that they provide with the benefits that customers require. In this sense, the second E of the 4E framework constitutes a method to develop a sustainable competitive advantage. Several social media tools are critical in helping marketers educate their potential customers, such as blogs and blogging tools (e.g., WordPress and Twitter), HubSpot (all-in-one marketing software), YouTube and

Social and Mobile Marketing Chapter Three 85 Adding Value 3.1 Educating Customers Using HubSpot 8 Today s marketers reach customers via a new set of inbound marketing tools that includes blogging, tweeting, websites, search engine optimization and analytics. However, effectively using these disconnected strategies requires time and technical savvy. To simplify matters, HubSpot helps its clients post content on websites, Twitter, and other social media platforms, and tracks the results with its proprietary software. Canadian Mountain Holidays Heli-Skiing & Summer Adventures (CMH) provides helicopter transport, lodging and guides for ski, snowboard, and hiking vacations. The adventure company had tried out a number of web-based tactics but found their approaches cumbersome and inefficient. Furthermore, without data capture, they had no ability to analyze the effectiveness of their efforts. However, after using HubSpot s analytics to help them coordinate and disseminate their social media messages and then analyze the results for three years, CMH documented a 387 percent increase in traffic from social marketing and a 772 percent increase in leads. Looking for an amazing vacation? Try out CMH. Google 1, as well as some lesser known options, such as Roost or Schedulicity. Adding Value 3.1 highlights how HubSpot can be used to better educate one s customers. Experience the Product or Service Although most of the top videos on YouTube are funny, silly, or otherwise entertaining, the site s most useful contributions may be the vivid information it provides about a firm s goods and services how they work, how to use them, and where they can be obtained. YouTube and similar sites can come relatively close to simulating real experiences. Such benefits are very common for products that have long been sold online so much so that we might forget that it used to be difficult to assess these products before buying them. But today, consumers can download a chapter of a new book onto their tablet before buying it. They can try out a software option for a month before buying it. They often can listen to a few seconds or even an entire song before purchasing from itunes. The diffusion of such products has expanded to feature a wealth of new channels and media options. For other offerings, such as services, social media again offer experience-based information that was not previously available unless consumers bought and tried

86 Section One Assessing the Marketplace Need information on how to install a water heater? Go to Home Depot s website. the product or service. Need help choosing a new nail polish color or applying a new makeup trend? Check blogs such as Temptalia (http://www.temptalia.com/ category/tutorials), which offers both advice and tutorials. Relied too long on clip-on ties? Head over to Tie-a-Tie (http://www.tie-a-tie.net/) to find pictures, videos, and step-by-step instructions on how to manage a Windsor, Pratt, or bowtie knot, as well as advice on what to wear to an interview. Home Depot has long been a source for do-it-yourselfers (DIYers). But if eager customers forget what the salesclerk said about installing a newly purchased water heater, they can check the retailer s website (http://www6.homedepot. com/how-to/index.html) to get detailed, in-depth instructions. They also will find a section that enables them to chat with other users who might have run into similar problems in their own installation projects. Nikon s Digital Learning Center (see http://www.flickr.com/groups/nikondigitallearningcenter/; http://www.flickr.com/nikon) provides Flickr members with tutorials, practical photography tips and advice from Nikon photo professionals to assist them in taking the photos they ve always dreamed of capturing. 9 Beyond just providing static photography tips that could be found in a book, Nikon created a two-way dialogue with customers, inviting professional photographers to provide instruction and host question-and-answer sessions, and encouraging users to post their own photos. The more than 64,000 members of the learning center thus learn from others experiences, even as they create their own. Engage the Customer In a sense, the first three Es set the stage for the last one: engaging the customer. With engagement comes action, the potential for a relationship, and possibly even loyalty and commitment. Through social media tools such as blogging and microblogging, customers actively engage with firms and their own social networks. Such engagement can be negative or positive. Positively engaged consumers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers. 10 On the other hand, Dave Carroll, a traveling musician whose guitar was roughly handled by United baggage handlers, was also closely engaged (in a negative manner) with the company and other users. He spent considerable time

Social and Mobile Marketing Chapter Three 87 and effort to release three songs and their videos, just to convince others that they should not fly United. But that story also offers an example of positive engagement. Carroll s music, face, and story gained international recognition as an example of how just one social media user could have a huge negative influence on a giant company. To leverage this fame, Carroll has established a website and blog, where he talks about his experiences. His book offers automatic links to copies of his famous United songs with every purchase. In this sense, Carroll is trying to move beyond the excitement and education he initially elicited from other consumers. Now he wants to engage those same people as consumers of his book. Next we ll look at the role of various social media tools in shaping the 4E framework for social media. CHECK YOURSELF 1. What are the 4 Es? 2. What social media elements work best for each of the 4 Es? CATEGORIES OF SOCIAL MEDIA Consider your own Facebook site. Are all your real-life friends your online friends too? Do you actually know all the friends registered on your online site? In all likelihood, you host online friends you ve never met, and your circle of virtual friends may be larger than the number of people you see regularly or talk to personally. Accordingly, the audience for marketers could be bigger on social media sites than through other, more traditional forms of media. Such a huge potential audience has gotten the attention of marketers. Marketers rely on the three types of social media: social network sites, mediasharing sites, and thought-sharing sites (or blogs) (see Exhibit 3.4) to achieve three objectives. First, members promote themselves to gain more friends. Second, the sites promote to get more members. Third, outside companies promote their products and services to appeal to the potential consumers that are active on the sites. LO2 Understand the types of social media. Social Network Sites Social network sites are an excellent way for marketers to create excitement, the first of the 4 Es. People can interact with friends (e.g., Facebook) or business acquaintances (e.g., LinkedIn). Although the amount of time people spend on such E X H I B I T 3.4 Types of Social Media Social media Social network sites Mediasharing sites Thoughtsharing sites

88 Section One Assessing the Marketplace E X H I B I T 3.5 Length of Time Using Social Networking Sites Daily Creators 8% Every other day or so 16% Less than an hour 1 2 hours 3 4 hours 33% 43% Bonders 0% Every other day or so 28% Less than an hour 1 2 hours 25% 3 4 hours 47% Professionals sion 18% Every other day or so 35% Less than an hour 28% 1 2 hours 20% 3 4 hours Sharers 7% Every other day or so 31% Less than an hour 1 2 hours 23% 3 4 hours 40% Source: Coca-Cola Retailing Research Council and the Integer Group, Social Networking Personas: A Look at Consumer and Shopper Mind Sets, in Untangling the Social Web: Insights for Users, Brands, and Retailers, March 2012. sites varies, research indicates that they are widely used. 11 Specifically, Exhibit 3.5 shows how much social networks are used by different types of consumers based on their motivations and habits. Note that the vast majority of people in this study use social network sites between one and four hours every day! Creators, those hip, cool contributors, sit at the cutting edge and plan to stay there. Social media give them new ways to post and share their creative, clever ideas. Bonders are social butterflies who use social media to enhance and expand their relationships, which they consider all-important in their lives. Professionals, who are constantly on the go and busy, want to appear efficient, with everything together, so they use social media to demonstrate just how smart they are. Sharers really want to help others, and the best way to do so is by being constantly well informed so that they can provide genuine insights to others. All four segments use various types of social networking, as the following sections detail. Facebook On this well-known social network platform, more than 800 million active users give companies a forum for interacting with their fans. Thus Facebook not only assures individual users a way to connect with others but gives marketers the ability to carefully target their audience. Companies have access to the same features that regular users do, including a wall where they can post company updates, photos, and videos or participate in a discussion board. Through this form of free exposure, the company can post content and information regarding products, events, news, or promotions that might be exciting to their customers. Only the fans of their page generally have access to such information, so the company can specifically target its fans. Successful companies on Facebook attempt to excite their customers regularly. On the fan page for the discount clothing retailer Forever 21, for example, 12 when a fan clicks to indicate that he or she likes a certain post, the message gets relayed to a news feed. Then every friend of that user sees what he or she likes, creating an exciting and huge multiplier effect. 13

Social and Mobile Marketing Chapter Three 89 Another, albeit more controversial example, was when Burger King launched a Facebook campaign in which customers could earn a free Whopper if they delisted 10 friends from their account. The so-called Whopper Sacrifice was intended to show what someone would give up for a Whopper, and the campaign attracted the participation of more than 200,000 active users. After a Whopper Sacrifice, the ex-friends received notification, which was also published on the Facebook minifeed and thus helped spread the word even more quickly. As the campaign caught on though, Facebook disabled it. Thus, the Facebook page for Burger King read: Facebook has disabled Whopper Sacrifice after your love for the Whopper sandwich proved to be stronger than 233,906 friendships. By affecting 233,906 people, who were either defriended or actually did the defriending, Burger King created a notable form of excitement despite being shut down quickly. 14 Display advertising with Facebook ads targets specific groups of people, according to their profile information, browsing histories, and other preferences. If online users reveal an interest in ski equipment or Burton snowboards, marketers can target both groups. Thus, Facebook offers a variation on more traditional forms of promotion, with the promise of more accurate targeting and segmentation. But being effective and relevant on Facebook is not simply a matter of shifting an offline ad into social network sites, as Adding Value 3.2 recognizes. Coca-Cola on Facebook: 50 million people like Coca-Cola on Facebook. LinkedIn A professional, instead of casual or friendship-based site, LinkedIn allows users to share their professional lives. With more than 150 million users, it is a place where users can post their résumés, network with other professionals, and search for jobs. 15 It is not the place where you will see games such as Mafia Wars or FarmVille; instead, users post to question-and-answer forums, do job searches, and post personal intellectual property, such as presentations they have given. The professional networking benefits of LinkedIn are particularly beneficial for small business owners. More than 12 million of LinkedIn s users are small business owners, making it an excellent resource for entrepreneurs to network with

90 Section One Assessing the Marketplace Adding Value 3.2 Effective Friending The use of social networking in marketing is so new that inexperienced marketers have launched poorly conceived Facebook campaigns with the hope that any strategy that includes social media is good enough. But good enough is rarely sufficient in a competitive marketplace, and some brands have hurt their images by launching campaigns that are out of step with social media culture. When a group of industry professionals discussed the ingredients necessary to attract positive attention from Facebook s 800 million users, 16 they agreed that a successful campaign must tell a story. Ideally, the story should involve and engage users in the plotline. Equally important, these creative heavyweights highlighted the need to connect the campaign to the real world, as Heinz did with its campaign that allowed users to send personalized cans of soup to sick friends (recall Exhibit 3.3).. Making good use of consumer data available on Facebook can also improve campaign success by giving marketers the ability to hone in on target audiences and track consumer response. After months of flat reactions to a Facebook promotion of its environmentally friendly cleaners, Clorox launched new initiatives designed to educate people about and increase sales of its Green Works products. The campaign targeted only those women whose Facebook profiles featured the words clean or green. 17 At the same time, Clorox aimed to enhance the experience of other potential users by inviting consumers to nominate green heroes in their community to receive a $15,000 grant. In yet another effort, Clorox offered a $3-off coupon to people who connected to the Green Works web page. The result was a record-breaking engagement rate for the company, demonstrating that social media, when used properly, can be a valuable marketing tool. Clorox s Facebook promotion is designed to educate people about and increase sales of its Green Works products. like-minded firms, identify the best vendors, or build brand reputation by participating in LinkedIn s professional association groups. With more than 150,000 company profiles on LinkedIn, it also offers a great place to prospect for new business customers and keep an eye on and get key information about competitors. 18 Google 1 The launch of Google 1 represents an attempt to compete with the excitement of Facebook. Its effect on social media and gaming communities was nearly immediate. Within six weeks of its launch, Google 1 had added 16 games to its lineup, including Angry Birds and Zynga Poker. The goal was to excite users who love to play, especially games that let them interact with one another the people who made such a massive success out of Facebook s FarmVille game. 19 If Google 1 can attract players effectively, it hopes they never go back to Facebook. With this tactic, Google 1 attracted more than 20 million unique visitors within weeks of its launch. But advertisers, users, and gaming companies continue to watch closely to discover how the Google 1 network will fare. Are users going to be loyal to Google 1, or are they just signing on to check out the newest thing from an Internet giant? 20

Social and Mobile Marketing Chapter Three 91 Google is Google s answer to Facebook. Superior Service 3.1 highlights how social network tools help small businesses expand by teaching their customers about what they can provide. Media-Sharing Sites The World Wide Web has the ability to connect people more easily and in more ways than have ever been possible before. Media-sharing sites explicitly rely on this capability to enable users to share content they have generated, from videos on YouTube to pictures on Flickr and so on. In terms of the 4E framework, companies use such sites to highlight how consumers can experience their goods or services, as well as encourage consumers to engage with the firm, its other social media outlets, and other consumers. YouTube On this video-sharing social media platform, users upload, share, and view videos. This medium gives companies a chance to express themselves in a different way than they have in the past. YouTube videos also show up in Google searches, making it an appealing vehicle for retailers. 21 The site s demographics indicate visitors are affluent, of the age range most appealing to retailers, and racially reflective of the wider U.S. population. 22 YouTube also provides an effective medium for hosting contests and posting instructional videos. The Home Depot attracts more than 4,400 viewers with an array of videos detailing new products available in stores, as well as instructional doit-yourself videos, like How To Tips for Mowing Your Lawn or How To Repair a Toilet. 23 These videos maintain the core identity of the Home Depot brand while also adding value for consumers, who learn useful ways to improve their homes. As a good example of IMC, Home Depot reinforces its brand image and makes itself more relevant to the consumer s life. Companies can broadcast from their own channel, that is, a YouTube site that contains content relevant only to the company s own products. 24 For example, Home Shopping Network (HSN) offers consumers an interesting vehicle to utilize the 4E framework excite, educate, experience, and engage using a multichannel strategy with its television channel as its central focus. As competition in this field has increased, HSN has added to its communication arsenal an e-commerce site, and

92 Section One Assessing the Marketplace Superior Service 3.1 Social Networks Help Small Businesses Grow Any small business, especially a new one, comes right up against the bottom line. A skeletal staff and tight budgets may make it tough to take on a new task, like social media management. When it comes to traditional small businesses, like the neighborhood plumber, Facebook or other social network outlets may seem irrelevant. Word of mouth has always worked for referrals, so why change now? Yet some small business owners have found that social networks are an essential tool to reach customers and put their products on the map. Specializing in luxury watches like Cartier and Rolex that sell for about $4,000 each, Melrose Jewelers has used social networks to connect with its primary customer base: young, upwardly mobile consumers who are technologically savvy. Its social media activity, including Facebook (with 100,000 likes), a blog, and YouTube, increased sales by 71 percent the first year. One Facebook campaign, a personality quiz that helped customers decide which watch best suited them, attracted $100,000 in sales. Facebook s customer testimonials also helped build credibility with older customers. 25 The owners of Yeti Coolers specialize in building a rugged cooler that defies all the elements outdoors. Once they began using Facebook and YouTube, fishermen, beach-goers, and others responded. With a Facebook page that soon logged 15,000 likes and fans uploading YouTube videos of lakeside fun around the cooler, Yeti Coolers built a community of customers devoted to its product. 26 Negri Electronics, a high-end cell phone vendor, uses Google 1 for customer communication. Google 1 circles enable the owner to send specialized messages to each customer group. Google 1 also has made Web searching more social, because the 11 feature allows the owner to prioritize web pages for circle members. The owner of Mansfield Fine Furniture disagrees, though. After six months in business, he has about a dozen customers who have purchased his pieces, which range in price from $500 to $5,000 each. He finds Facebook still yields a more robust customer response, because Google 1 is not yet widely used. 27 Social networks, with the right management tools, can help a small business grow its customer base. Now, about that plumber, what can social networks do for him or her? Products promoted on Home Shopping Network (HSN) are available on its dedicated YouTube channel almost immediately after they appear on television. Facebook and MySpace pages. But perhaps the most powerful tool it has added is its dedicated YouTube channel, which it exploits to reach target shoppers in an exciting way that maximizes the value of its media content. Products promoted on HSN, such as Tori Spelling s jewelry line, 28 are available on YouTube almost immediately after they appear on television. Then HSN marketers can use the information gathered from YouTube to target its direct mail campaigns. For example, it could send jewelry promotions to households that viewed the YouTube video clip for a necklace from the Tori Spelling Collection. Consumer responses get monitored 24/7 and measured against hourly sales goals. There s thus never a dull moment. Flickr and Other Photo Sites Whereas YouTube allows users to share videos, Flickr, Picasa, TwitPic, Photobucket, and Imgur allow them to share photos. They tend to be less popular as marketing tools, yet some innovative companies

Social and Mobile Marketing Chapter Three 93 have found ways to engage with customers, such as by hosting picture posting competitions or using photos to communicate core tenets and values.29 The U.K. brand Innocent, known for selling pure 100 percent fruit smoothies, uses Flickr to communicate its quirky brand image. Its photo posting competitions, such as the Funny Shaped Fruit Competition (http://www.flickr.com/groups/funnyshapedfruit/), provide significant entertainment value. But it also uses Flickr for more serious purposes, such as to post photos related to its Big Knit charity promotion.30 Thought-Sharing Sites Thought-sharing sites consist of different types of blogs: corporate, professional, personal, and micro. In terms of the 4E framework, blogs are particularly effective at educating and engaging users, and in many cases enhance their experience with the products and services being discussed. Blogs Once upon a time, confined to a journal or diary in a person s room, the blog (from web log ) on the Internet has allowed us to make our thoughts open to the world through thought-sharing websites. For corporations, the comment section allows marketing managers to create a two-way dialogue directly with the end users. The wide availability of free blogging tools such as WordPress, Blogger, and TypePad, which enable non technically oriented people to create their own blogs, has made blogging a very popular pastime. In 2009 Technorati estimated that 200 million English language blogs existed, and by February of 2012, that number had grown to 450 million.31 Companies have responded to this interest and now have several ways to include blogging in their social media marketing strategy. Blogs provide firms the opportunity to educate their customers about their offerings, and to engage them by responding to their communications, both positive and negative. The reach that marketers have to their customers from blogs can be categorized by the level of control they offer. Corporate blogs, which are created by the companies themselves, have the highest level of control, because to a large degree, they can control the content posted on them. Of course, blogs also allow customers to respond to posts, so the content can never be completely controlled, but marketing managers have a good opportunity to pepper their blogs with the messages they wish their customers to see. The best corporate blogs illustrate the importance of engaging customers around the core brand tenets without being overly concerned with a hard sell. Starbucks (http://mystarbucksidea.force.com/apex/ideahome) uses its blog for new product development by generating new product and experience ideas from its customers. The popular regional grocery store chain Wegman s (http://www. wegmans.com/blog/) blogs to generate loyalty and generate sales by sharing employees ideas about entertaining, nutrition, and recipes. General Electric (http:// www.gereports.com/) educates customers through its blog by telling entertaining stories geared at getting customers to realize it sells more than just light bulbs.32 From a marketing perspective, professional blogs are those written by people who review and give recommendations on products and services. Marketers often offer free products or provide modest remuneration to top-rated professional bloggers, in the hopes of getting a good product review. Marketers have less control over professional bloggers than they do their own corporate blogs. But consumers seem to trust professional bloggers reviews much more than corporate blogs and other more traditional media, like advertising. Such trust may be fleeting, however, as more consumers realize that professional bloggers are often compensated for positive reviews. Mommy Blogs, a particularly popular type of professional blog, feature advice and Innocent uses Flickr to post photos for its Big Knit charity promotion.

94 Section One Assessing the Marketplace Adding Value 3.3 Never Say Never Once Social Media Catches Fire Teen idol Justin Bieber was just a boy who liked to sing when his mother uploaded some of their homemade videos onto YouTube in 2007. Within a year, the 13-yearold Canadian had been discovered, signed a contract with the record producer Usher, and was well on his way to a blockbuster career. In 2010, he performed for President Obama. His Baby video registered the most views on YouTube, with more than 408 million downloads.33 His phenomenal success worldwide points to the power of social media especially for anyone trying to reach a global market of adolescent girls. Bieber s vast social media platform reaches millions of followers worldwide, including around 40 million fans on his Facebook site, and more than 21,000 new members join every day. His music on MySpace has registered more than 108 million plays.34 Yet Bieber s success was not, at first, guaranteed. When music producer Scooter Braun spotted him on YouTube and took his videos to the record companies, they declined. But Braun believed in his young client s boy-next-door-look and convincing R&B sound. So he decided to continue the YouTube uploads of Bieber performing in any venue they could find.35 By the time Bieber surpassed 10 million YouTube views, he had also started working with Usher. My World, his first album, pushed Bieber s YouTube numbers past 100 million views.36 He and his management team never looked back. In 2011, Bieber broke YouTube records by reaching 2 billion views.37 Twitter helped build so much buzz that one New York concert had to be cancelled after 5,000 fans suddenly swarmed the venue in a kind of flash mob.38 Bieber also has over 14 million Twitter followers; his account represents 3 percent of the total traffic on Twitter,39 where his fan clubs thrive. One of biggest began in Australia and soon had 90,000 followers tweeting from @JBSource. Besieged by media requests, the singer granted the two girls leading that club his only interview, rather than meet with the major media. The interview became the most watched video of Bieber s tour. Teenagers want to see Bieber meet and talk with someone like them, Braun later explained, not look for information on a dot-com news site.40 The Bieber team also has continued to use social media to promote his records and concerts. When the song Never Say Never was released, a web video campaign registered 2.8 million views and 400,000 personalized videos, logging more audience engagement than ever before.41 In perhaps the perfect convergence of a product, a marketing medium, and the moment, Justin Bieber has ridden social media all the way to the top. Whatever you might think of his singing, it makes for great marketing, especially in the age of instantaneous connection.

Social and Mobile Marketing Chapter Three 95 product recommendations from one mother to many others. Dooce, written by Heather Armstrong, has more than 1.5 million mommy followers. 42 Finally, personal blogs are written by people that receive no products or remuneration for their efforts. Thus, of the various types of blogs, marketers have the lowest level of control over this type. However, personal blogs are useful for monitoring what is going on in the marketplace and for responding to customer complaints or compliments. Microblogs As the name implies, a microblog differs from a traditional blog in size short sentences, short videos, or individual images. On the most popular microblogging site, Twitter, users are limited to 140-character messages. Twitter provides another option for companies to educate their customers by providing corporate and product information, and to engage them by providing a platform for two-way communications. Even companies that may have once resisted social media are now realizing that Twitter offers an important communications channel. As much as Twitter can help build a firm s brand image though, it can also tarnish it instantly. Firms have to watch out for hacked Twitter accounts or illconsidered tweets. And Twitter can also act as an international, rapidly spread complaint forum. 43 A central problem for companies is ownership of relevant Twitter handles and responsibility for outgoing Twitter communication. If Twitter control is shared by a lot of people, the message usually gets muddled. But if only one or two people are in charge, the need to respond to the vast number of incoming tweets might become overwhelming. Different companies thus manage their Twitter strategies in various ways. Whole Foods tries to develop a broader engagement with customers by interacting with its 2.1 million Twitter followers. It instituted a weekly Twitter chat, for an hour every Thursday, during which Whole Foods representatives discuss topics such as holiday menu planning and healthy eating. Many Whole Foods stores also have their own Twitter accounts to answer questions directly related to their stores. In contrast, Best Buy hires an army of specialists to manage its Twitter accounts: not just the main account @Best Buy, but also @BestBuy_Deals, @GeekSquad, and @BestBuyNews. The specialists who work Best Buy s help desk also will answer questions through Twitter, at @Twelpforce. Users who tweet the help desk receive an almost instant response from one of Best Buy s 3,000 employees who have signed up to participate on the task force, which further helps showcase the broad spectrum of expertise available through Best Buy. 44 For small companies with limited marketing budgets, the use of tweeted promotional messages are particularly appealing. A local bakery tweeted, Two new scones: Lemon Blueberry and Chorizo Cheddar! and received responses from 400 Twitter followers a huge captive audience for a local entity. Of course, some of the most famous Twitter users are celebrities, who have their own brands to manage and marketing goals to reach. Think about how teen idol Justin Bieber and his management team have relied on Twitter and other social media to reach his target audience, as we describe in Adding Value 3.3. GOING MOBILE AND SOCIAL Although 97 percent of consumers access social media through their computers, 37 percent access these media via their mobile phones, 3 percent through ipads, and 2 percent through e-readers. 45 Also, of the more than 100 million people that have smartphones in the U.S., approximately half of them make purchases on these devices. Thus, mobile marketing is significant and growing. In this huge market, consumers generally are younger and wealthier than others who own LO3 Understand the types of mobile applications.

96 Section One Assessing the Marketplace Ethical and Societal Dilemma 3.1 Internet vs. Brick-and- Mortar Stores Smartphone price check apps help consumers save money by using a scanned bar code, search query, or photo and spoken product name to search multiple merchants for the best price for a particular item. The results tend to favor online merchants, which don t have to bear the cost of brick-and-mortar stores. But Amazon took price checking a step further: Just in time for holiday shopping, the company sliced off an additional 5 percent for shoppers using Amazon s Price Check app in a physical store. 46 The app only revealed Amazon s price, and the discount, which applied to toys, electronics, and DVDs, could be used for up to three items at a maximum savings of $5 per item. Retailers complained that the app rewarded consumers for using brick-and-mortar stores as showrooms where shoppers could experience an item in a comfortable environment, learn about it from sales staff, decide to buy it, and then receive a discount for purchasing it online oftentimes while the customer was still in the store. Although the discount didn t apply to books, it triggered outrage and a call for an Amazon boycott from bookstores already hurt by the Internet retailer s low prices and ability to avoid collecting state sales tax. 47 Critics called the promotion predatory and claimed Amazon was compromising the personality and economic stability of communities. Retailers compete for customers, particularly during the holiday season, and Amazon s promotion helped shoppers save money. But should Amazon have considered the showroom effect on brick-and-mortar stores? On a broader scale, how aggressive can a marketer be before triggering backlash that can harm the company s reputation? older-model mobile phones (or none at all). For example, more than 50 percent of mobile retail consumers earn at least $75,000 annually. In terms of the 4E framework, mobile marketing is particularly useful for creating excitement with consumers at the time of sale as we now explain. Several applications have been developed to better market goods and services to these attractive consumers. We briefly discuss a few types: price check apps, fashion apps, and location apps. Price Check Apps When out shopping, smartphone users no longer have to go from store to store or stop home to go online and compare prices. Using a price checking app, such as at Amazon, or Stylish Girl, customers can scan a product in a store and instantly compare the prices online to see whether a better deal is available. Although price checking can encourage competition, as we discuss in Ethical and Societal Dilemma 3.1, companies can stray into grey ethical areas depending on how they promote their apps. Realizing that online price checking could be damaging to business, retailers are responding in kind. Lowe s arms its employees with smartphones to help them instantly search the in-store and nearby inventories and place orders online if products are out of stock, to ensure that no customer ever leaves empty handed. 48 Target is working with vendors to create exclusive in-store items, to match online retailer pricing, and to develop a subscription-based online pricing strategy that gives regular buyers special discounts. 49 Fashion Apps The consumers who are most likely to use mobile media also are likely to buy from technology and fashion-oriented firms, whether they are fashion or technology retailers, sell fashion magazine content, or brand information. Style.com offers a mobile application for people to access the same content available on the Style magazine website, including blogs, reviews, couture shows, and video feeds. 50 Other apps provide a more in-depth look at a particular brand. Louis Vuitton s NOWNESS app combines magazine content with brand promotion. Pose is not brand-specific; instead, this photo-sharing app shares various style and fashion views and tips. Pinterest allows people to pin merchandise, services, recipes, or ideas onto a virtual bulletin board. For instance, Pinterest users can

Social and Mobile Marketing Chapter Three 97 pin clothing and accessories that match their personal taste; while others can browse their pinboards to discover new things and make comments. Marketers therefore can receive unlimited exposure to their products and services as like-minded people share pinned items and services. Location-Based Gamified Apps Smartphone owners are increasingly using location-based apps. Customers can download several free apps that use the GPS function of their phone to share what they are doing, where they are, and when they re doing it. Companies use these apps to build loyalty by making patronage a game, a process known as gamification. Users of FourSquare can check in at their favorite restaurants and stores, sharing their location on Facebook. They can compete with other users for the title of Mayor by achieving the most number of check-ins at a retail location in a 60-day period. Another spin on location-based gamification is SCVNGR. This app takes location-based gaming and direct sales to the next level. Users logging onto the app will be provided with a list of stores near them participating in SCVNGR. By completing challenges at these stores, ranging from simply checking in to bumping phones with other SCVNGR users at the establishment to making a portrait of the person sitting across from them out of food and taking a picture of it, users accrue points that unlock in-app badges and real-world coupons such as free coffee. Another interesting app is Snapette, which focuses on shoes and bags and aims to help customers find the merchandise they want according to their immediate location. In the past two decades, marketers have developed websites and other methods to communicate information about and to sell their goods and services. Their quest for new ways to improve, integrate, and enhance these outcomes has resulted in a confluence of social, mobile, and online marketing. Exhibit 3.6 is a Users of FourSquare can check in at their favorite restaurants and stores, sharing their location on Facebook. E X H I B I T 3.6 Firms Use of Social and Mobile Tools from the 4E Lens Excite Educate Experience Engage Social networks Media-sharing sites Thoughtsharing sites Mobile applications

98 Section One Assessing the Marketplace brief summary of how these forces and their manifestations align with our 4E framework. It highlights how social network and mobile applications and the associated relevant offers are ideal for stimulating excitement in the offers. In particular, mobile location-based apps are exciting because they provide customers with highly relevant offers when they are in close proximity to the retailer or service provider or they can even be used to provide competitive offers. Media-sharing sites (e.g., YouTube and Flickr) are excellent social media tools that provide customers visual experiences of customers or professionals who are using these goods and services. They also provide customers an opportunity to engage with the firms as well as their own social network by posting their own experiences (i.e., uploading videos), as well as sharing their thoughts (blogs and Twitter posts). Finally, thought-sharing sites, like blogs, are excellent for providing customer education, as was highlighted by how HubSpot adds value for their clients. CHECK YOURSELF 1. What is an example of a social network, a media-sharing site, a thoughtsharing site, and a mobile application? 2. On which of the 4e dimensions do social networks, media-sharing sites, thought-sharing sites, and mobile applications excel? LO4 Recognize and understand the three components of a social media strategy. HOW DO FIRMS ENGAGE THEIR CUSTOMERS USING SOCIAL MEDIA? Now that we have an understanding of the various social and mobile media that are at the firm s disposal, it is important to determine how firms should go about engaging customers through social and mobile media. The three-stage process found in Exhibit 3.7 is listen to what customers have to say, analyze the information available through various touch points, and finally implement (or do ) social media tactics to excite customers. Listen From a market research point of view, companies can learn a lot about their customers by listening (and monitoring) what they say on their social networks, blogs, review sites, etc. Customers appear willing to provide their opinions about just about anything including their interests, and purchases both their own and those of their friends. Writing blogs and providing opinions via polls about such diverse topics as BOTOX treatments, ASICS running sneakers, or a particular play of an NFL team during the playoffs all constitute new ways that customers communicate with one another and with marketers who are paying attention. E X H I B I T 3.7 Social Media Engagement Process Marketers can analyze the content found on sites like Facebook, Twitter, online blogs, and reviews to assess the favorableness or unfavorableness of the sentiments, using a technique known as sentiment analysis. Sentiment analysis allows marketers to analyze Listen Analyze Do data from these sources to collect consumer com- ments about companies and their products. The data are then analyzed to distill customer attitudes and preferences, including reactions to specific products

Social and Mobile Marketing Chapter Three 99 and IMC campaigns. Scouring millions of sites with sentiment analysis techniques provides new insights into what consumers really think. Companies plugged into such real-time information and insights can become more nimble, allowing for numerous quick changes, such as in a product roll-out, a new advertising campaign, or reacting to customer complaints. There are several companies that specialize in monitoring social media. 51 For example, Radian6 offers social media listening and engagement tools to help its clients such as Dell, GE, Kodak, Microsoft, and PepsiCo connect with its customers. 52 Using sentiment analysis techniques, it processes a constant stream of online consumer opinion from blogs, Facebook, and other networking sites, including 400 million Twitter tweets a day. The Radian6 tools for managing consumer sentiment data allow companies to identify opinion trends that might warrant an online corporate response. For instance, Radian6 may identify negative consumer sentiment and then provides services to help their client respond. Reacting to attitudes uncovered in sentiment analysis allows companies to counteract negative opinions, maybe influence those perceptions, and perhaps win customer loyalty. 53 As an example of how a firm like Radian6 can help its clients engage their customers, consider the New York based nonprofit Let s Get Ready that helps lowincome high school students get into college. 54 When it decided to compete for Chase American Giving Awards funding, Let s Get Ready needed broader support. Radian6 helped the organization find Web-based conversations among individuals and groups who might share its educational mission. It further helped Let s Get Ready reach out to potential supporters, share information about its work, and ask for votes. The campaign worked: Let s Get Ready placed second, winning $500,000 for free SAT preparation and college admission counseling to motivated students. Sentiment analysis thus is fundamentally transforming how companies interact with and engage their customers. Analyze Fortunately, the companies that help facilitate listening also provide analytic tools to assess what customers are saying about the firm and its competitors. There are three main categories of analysis used for understanding data collected from social media. 55 Radian6 analyzes customer sentiment for its customers, which enables them to identify opinion trends that might warrant an online corporate response.